Higher energy costs forecast, KCC says

Higher energy costs are expected in the future, based on current national forecasts, according to the Kansas Corporation Commission.

This will likely increase the cost to cool homes and businesses this summer and heat them this winter, according to the news release from the KCC.

The KCC advised homeowners to weatherize their homes and undertake energy efficiency investments as they are able.

Like many other energy and commodity prices, monthly wholesale natural gas prices have recently increased to levels not seen in the United States since September 2008, the KCC stated.

Wholesale electricity prices have increased as well. On April 18, the New York Mercantile Exchange (NYMEX) futures price for natural gas climbed to nearly $8/MMBtu (Metric Million British thermal units) for May and June, with prices over $8/MMBtu for the rest of this year and upcoming winter. For context, natural gas prices regularly traded in the $2-$3/MMBtu range for much of the last decade.

The Energy Information Administration (EIA) recently released its Short-Term Energy Outlook indicating energy price forecasts for the rest of the year are subject to heightened levels of uncertainty from factors such as the continuing war between Russia and Ukraine, decisions of OPEC+, and the rate at which U.S. Oil and Natural Gas producers increase drilling in response to higher prices.

The KCC has launched an online resource to provide additional information, help consumers minimize the impact, and find financial and weatherization assistance. The information is available at https://kcc.ks.gov/consumer-alert-spring-2022